Companhia Paranaense de Energia Pfd (ELP) AI Stock Analysis

• Market Cap: $6.44B
• Dividend Yield: 5%
• Average Volume (3M): 243.97K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.32
• Revenue Growth: -7.02%
• EPS Growth: 17.33%
• Country: US
• Employees: 4,396
• Sector: Utilities
• Sector Strength: 73
• Industry: Diversified Utilities
• EPS (TTM): 0.15
• Shares Outstanding: 335,867,070
• 10 Day Avg. Volume: 312,030
• 30 Day Avg. Volume: 243,970
• PEG Ratio: -1.06
• Price to Book (P/B): 4.09
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 35.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $10.00 ▲(12.61%Upside)

The overall stock score of 78 reflects strong financial performance supported by robust profitability and efficient cash flow management. Technical analysis indicates a bullish trend, while the valuation suggests the stock is well-priced with a solid dividend yield. The absence of recent earnings guidance or notable corporate events limits additional insights, but the fundamental financial health and favorable market trends provide a positive outlook.

Positive Factors

Analyst Rating

Analyst reiterates a Buy rating with a price objective of R$12, reflecting confidence in the company's strategic moves and financial outlook.

Asset Rotation

Copel announced a positive asset rotation involving the Baixo Iguaçu Hydropower Plant, which adds ~1% NPV to the base-case valuation and could potentially result in additional dividends.

Dividends

Copel announced an additional R$1.3bn dividends related to FY24 results, leading to a 4.3% dividend yield and an 86% total payout FY24.

Negative Factors

Operational Results

Copel reported slightly below estimates 4Q24 operational results with adj. EBITDA at R$1.3bn, down 13% YoY and 5% below BofAe and BBG Consensus.

Companhia Paranaense de Energia Pfd Business Overview & Revenue Model

Company Description

Companhia Paranaense de Energia Pfd (ELP), commonly known as Copel, is a prominent utility company based in Brazil. It operates primarily in the electricity sector, engaging in the generation, transmission, distribution, and sale of electric energy. Copel serves both residential and commercial customers, providing essential energy services across the State of Paraná and beyond. The company is also involved in the telecommunications sector, offering a range of services including internet and data transmission.

How the Company Makes Money

Copel generates revenue through several key streams within the energy sector. Its primary revenue source is the sale of electric energy, which encompasses generation, transmission, and distribution services. The company operates numerous power plants, including hydroelectric, wind, and thermal facilities, which collectively contribute to the generation segment. Revenue from the transmission and distribution of electricity is generated through regulated tariffs set by the Brazilian electricity regulatory agency, ANEEL. Additionally, Copel earns income from its telecommunications operations, offering internet and data services to both residential and corporate clients. The company's financial performance is influenced by regulatory policies, energy demand, and strategic partnerships that enhance its operational capacity and market reach.

Companhia Paranaense de Energia Pfd Financial Statement Overview

Summary

Companhia Paranaense de Energia Pfd exhibits a strong financial standing with robust profitability. The income statement shows solid operational efficiency with high EBIT and EBITDA margins. The balance sheet is stable with a healthy debt-to-equity ratio and solid equity base. Cash flow management is efficient with positive free cash flow growth.

Income Statement

The company has shown strong financial performance in the TTM (Trailing-Twelve-Months) period. The gross profit margin stands at 20.35%, indicating efficient cost management. The net profit margin is 12.73%, reflecting solid profitability. The revenue growth rate is 2.10% from the previous year, showcasing steady growth. Additionally, the EBIT margin is 31.23%, and the EBITDA margin is 24.48%, both of which are robust, indicating strong operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating a balanced use of debt. The return on equity (ROE) is 11.20%, which is healthy, suggesting effective use of shareholders' funds. The equity ratio is 43.61%, showcasing a solid equity base relative to total assets.

Cash Flow

The cash flow statement presents a positive outlook with a free cash flow growth rate of 6.84% over the previous period, highlighting strong cash generation. The operating cash flow to net income ratio is 1.22, and the free cash flow to net income ratio is 1.18, both of which indicate efficient cash flow management and conversion of profits into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.00B	22.65B	21.48B	20.54B	23.98B	18.63B
	Gross Profit
3.44B	4.07B	4.90B	4.93B	4.27B	4.06B
	EBIT
3.72B	4.06B	3.19B	1.28B	2.91B	5.12B
	EBITDA
5.02B	5.17B	3.96B	3.64B	5.64B	6.61B
	Net Income Common Stockholders
2.27B	2.81B	2.26B	1.11B	4.95B	3.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.94B	4.16B	5.65B	2.68B	3.49B	3.22B
	Total Assets
38.31B	57.38B	55.82B	49.70B	49.54B	46.78B
	Total Debt
11.64B	17.57B	15.23B	12.73B	12.04B	10.08B
	Net Debt
8.69B	13.41B	9.60B	10.05B	8.57B	6.86B
	Total Liabilities
20.71B	31.75B	31.63B	28.57B	27.36B	26.53B
	Stockholders Equity
17.25B	25.67B	23.89B	20.82B	21.84B	19.96B
Cash Flow		Free Cash Flow
2.95B	3.26B	3.30B	3.51B	3.04B	3.77B
	Operating Cash Flow
3.15B	3.39B	3.52B	3.90B	3.39B	4.02B
	Investing Cash Flow
-2.77B	-5.74B	-3.14B	-2.77B	31.91M	-1.67B
	Financing Cash Flow
2.70B	803.86M	2.70B	-1.92B	-2.88B	-1.79B

Companhia Paranaense de Energia Pfd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Positive. The current price of 8.88 is above the 20-day moving average (MA) of 8.84, above the 50-day MA of 8.16, and above the 200-day MA of 6.97, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELP.

Companhia Paranaense de Energia Pfd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	82 Outperform	$6.14B	4.17	26.38%	75.73%	-4.14%	13.02%
ELP	78 Outperform	$6.44B	12.61	9.22%	5.00%	-7.02%	17.33%
ELPC	77 Outperform	$6.44B	11.65	9.22%	4.92%	-7.02%	17.33%
Sector *	64 Neutral	$8.52B	10.39	4.24%	4.38%	4.14%	-13.04%
BIP	64 Neutral	$21.72B	2,867.59	0.47%	5.16%	12.40%	-108.27%
AES	54 Neutral	$7.75B	5.95	29.79%	6.40%	-3.22%	141.11%
HE	49 Neutral	$1.83B	―	-67.93%	―	-7.58%	-819.97%